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San Francisco Mortgages: Origination Fees & Loan Volume 2011-2014

By Arvin Sahakian · Dec 1, 2015 · Mortgage

San Francisco Mortgages: Origination Fees & Loan Volume 2011-2014

Image courtesy of Flickr, Andrew Moore

San Francisco County homeowners have paid an estimated $817.949 Million in origination fees to attain a purchase and refinance loan on their homes from 2011 - 2014. We review how many mortgages were originated, the average loan amount and what borrowers paid in fees.

San Francisco County is small when compared to other counties in California with a metropolis like Los Angeles and San Diego. The number and volume of mortgage loans are also small in comparison, but the industry always keeps a watchful eye on San Francisco. The tech industry there has been growing since the "Dotcom Bubble" burst in in the late 1990's - early 2000's, and property values have been soaring since the recovery from the mortgage crisis in 2008, so there is little surprise to why San Francisco is frequently making headlines.

In this article, we will specifically discuss the purchase and refinance of mortgage loans in San Francisco County. You will learn how many purchase and refinance loans were originated from 2011 - 2014. You will also learn what the average loan amounts were, what the total loan volume was and how much in origination fees were paid by homeowners from 2011 - 2014.

Where Did We Get the Data?

We took a close and exhaustive look at mortgage loan origination data derived from the CFPB website in relation to the Home Mortgage Disclosure Act (HMDA), which is a United States federal law that requires certain financial institutions to provide mortgage data to the public.

The data we reviewed spans the years 2011 - 2014 and includes all residential purchase loans and refinances in San Francisco County. The data we retrieved includes originated loans for one-to-four family dwellings, manufactured housing and multifamily dwellings.

The HMDA defines a multifamily property as a residential structure that houses five or more families. A structure is classified as a one-to-four family property if it houses fewer than five families, it also includes individual condominiums or cooperative units.

Total Number of Purchase Loans in San Francisco County from 2011 - 2014

Real estate purchase loan activity has been relatively stable in San Francisco County, with a total of 21,958 purchase loans from 2011 - 2014 according to HMDA data. The year 2014 had 5,380 purchase loans originated. The chart below will visualize the data for purchase loans for this four year time span.


Number of purchase Loans in S.F. County from 2011 - 2014

Average Purchase Loan Amount in San Francisco County from 2011-2014

San Francisco County is the most expensive county in the state of California. The average purchase loan amount is highest within the state and relatively high when compared to other states in the U.S. In 2014, the data suggests that the average purchase loan amount in S.F. County was $930,191. The graph below outlines the average purchase loan amounts for the four year time span.


Average Purchase Loan Amount in S.F. County from 2011 - 2014

Total Purchase Loan Volume in San Francisco County from 2011 - 2014

The total mortgage purchase loan volume in San Francisco County from the years 2011 – 2014 was $17,520,975,000. The table and chart below will show the loan volume for purchase loans in S.F. County for the four year time span.


Year Loan Volume
2011 $3,217,689,000
2012 $4,457,133,000
2013 $4,841,727,000
2014 $5,004,426,000

Purchase Loan Volume in S.F. County from 2011 - 2014

Total Number of Refinance Loans in San Francisco County from 2011 - 2014

San Francisco County mortgage refinance activity in 2014 was less than half of what it was in 2013. S.F. County saw a total of 68,782 mortgages refinanced from 2011 – 2014 according to HMDA data. The year 2014 had 7,283 refinanced mortgage loans originated. The chart below will visualize the data for refinance activity during this four year time span.


Number of Refinance Loans in S.F. County from 2011 - 2014

Average Refinance Loan Amount in San Francisco County from 2011-2014

California has a tremendous amount of activity with regards to mortgage refinances. There is no doubt that it is an extremely lucrative part of the mortgage lending business within the state. According to the data, the average refinance loan amount S.F. County was $641,388 in 2014. The graph below outlines visualizes the average mortgage refinance loan amounts during the four year time span.


Average Refinance Loan Amount in S.F. County from 2011 - 2014

Total Refinance Loan Volume in San Francisco County from 2011 - 2014

Our research into the data reveals that refinance loan activity has been more than double that of purchase loan activity in San Francisco County when considering the total for all four years. The total mortgage refinance loan volume from years 2011 – 2014 was $37,008,967,000. The table and chart below will show the loan volume for purchase loans in S.F. County during the four year time span.


Year Loan Volume
2011 $9,073,499,000
2012 $12,817,881,000
2013 $10,446,361,000
2014 $4,671,226,000

Refinance Loan Volume in S.F. County from 2011 - 2014

Origination Fees Paid For Mortgage Loans in San Francisco County from 2011 - 2014

Based on our research, we have found that the majority of new and existing homeowners use the services of traditional mortgage lenders and mortgage brokers to help them attain a new purchase loan or refinance their existing home loan. The majority of mortgage customers pay within a range of 0.50 – 2.5 percent of the loan amount as the origination fee, depending on each borrowers unique credit qualifications.

For our intents and purposes, we will use the middle of the range to approximate that mortgage loan borrowers in San Francisco County paid 1.50 percent of their loan amount in origination fees. Using this figure, from the years 2011 – 2014, purchase loan borrowers paid a total of $262,814,625 in origination fees and refinance loan borrowers paid a total of $555,134,505 during the four year period.

The following graph will visualizes and compares how much in origination fees were paid by borrowers to attain purchase loans and refinance loans from 2011 – 2014.


Loan Origination Fees in S.F. County from 2011 - 2014

What Other Fees Come with a Mortgage Loan?

It’s important to keep in mind that the fees we have discussed here are simply for the charges a borrower pays to lender or broker to originate the loan for them. This lender/broker fee typically includes an administrative fee, an application fee, an underwriting fee, document preparation fees and other smaller fees which amount to approximately 1.50 percent of the loan amount, based on our estimations.

Every mortgage loan process also has other fees in addition to origination fees that fall under the closing cost category, such as escrow services, title insurance, mortgage insurance, notary fee, appraisal fee, document recording fees and other smaller fees as well. Depending on the size of your loan, the type of property and the particular state and county you are in, these fees can amount to another 1 - 2 percent of the loan amount in addition to the origination fee. You can use this closing cost calculator to get a better idea of what you can expect to pay when looking for a purchase mortgage or a refinance.


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